Delaware proposes new job creation tax credits

Delaware is looking at a proposal that would reward companies that make new hires. The measure is designed to attract new business to the state as well as rewarding companies already in Delaware that add new workers. Sponsors of the bill say they have been working with businesses directly on crafting the measure, to ensure the desired outcomes. Sponsors hope that the new bill will make permanent elements of Delaware’s “Blue Collar Jobs Tax Credit,” which is set to expire.

Senator Robert Marshall, House Speaker Robert Gilligan are sponsoring the bill which will expand the number and types of industries that qualify for the tax credit. The bill will also increase the size of the overall incentive and pushes companies to hire now in order to foster immediate growth. All sizes of businesses will be eligible for the credit if they meet the job creation requirements.

Under the terms of the bill, the Blue Collar Jobs Tax Credit would become permanent instead of sunsetting after 10 years. The tax credit incentive will increase by $100 for every qualifying job and qualifying business investment. In addition, the bill aims to diversify the state’s economy by encouraging the technology industry and sustainable businesses to take part in the program. Businesses that manufacture clean-energy systems will receive 50% higher income tax credits and a lower gross receipts tax rate through the new program.

“We want to support existing employers’ efforts to expand here in Delaware. We want to keep attracting more businesses to make our state their home. This proposal would provide some help with both,” Governor Markell said of the bill. “This effort comes from months of conversations with businesses about how we could be a better partner in building their workforce. We want what they want – more people being able to say to their families that they are back to work.”